Al-Kheir Stores: Reducing inventory shrinkage by 30% across a 9-branch retail network
A regional retail chain faced persistent physical inventory discrepancies and lacked visibility into per-item profitability. We deployed Avanta ERP, coupled with integrated POS terminals across all locations, to enforce strict inventory controls and cycle counting.
30%
Reduction in inventory shrinkage
9
Branches synchronized in real-time
يومان
Month-end financial closing
Background
The chain began as a single grocery and household-goods store, expanding over six years into nine branches across residential districts. Growth, however, never came with standardization: each branch ran its own style of ordering, pricing, and settlement while headquarters consolidated results by hand at month-end. Physical counts happened sporadically and without a fixed methodology, so variance reports arrived late and unexplained.
The challenge
Management relied on siloed monthly branch reports. Variances between physical counts and book inventory alarmingly exceeded 6% of total stock value in certain locations, with zero analytical capability to trace the root causes.
The solution
Within an 8-week timeframe, we successfully rolled out Avanta ERP and integrated POS systems across all 9 branches. The solution enforced real-time inventory deduction upon sale, mandated randomized weekly cycle counts, and deployed strict role-based permissions to eliminate manual inventory tampering.
Implementation
The first two weeks went to a full wall-to-wall count, item coding, and unified units of measure; the next two ran POS in parallel with the old workflow to validate cashier speed and queue times; the final four rolled out to all nine branches with intensive cashier and manager training and role-based permissions. That sequencing mattered: fixing the inventory foundation first is what made every number trustworthy from day one.
The outcome
Inventory shrinkage dropped below 4% within the first operational quarter. Executive management achieved daily visibility into granular, per-item and per-branch profitability. Procurement strategies transitioned from relying on staff estimations to being driven by empirical, real-time data analytics.
Lasting impact
Randomized cycle counting became a firmly rooted weekly habit instead of a dreaded annual event, and replenishment shifted to automatic reorder points computed from each item's actual selling rate per branch. Granular volume data let management negotiate better terms with major suppliers, while the per-item profitability report became the first reference for any decision to introduce or retire a product.
Next step
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